EconomicsUSA: Housing: Declining prices longterm trend, won't derail Economic recover

jan 12,2k11

Continued U.S. Housing Price Decline Won’t Derail the U.S. Economic Rebound

[Editor's Note: Former global merchant banker Martin Hutchinson warned investors about the dangers that subprime mortgages posed to the U.S. housing market -and to the U.S. economy. Read what he's predicting now.]

BY MARTIN HUTCHINSON, Contributing Editor, Money Morning

U.S. housing prices still have further to fall -perhaps a lot further.

In fact, depending upon the circumstances, the additional price declines could be quite steep.

But here's the shocker: That decline won't necessarily cause a "double-dip" recession.

In fact, it probably won't even derail the U.S. economic recovery.

Let me explain ...

-- EconoMix